Walmart will offer same-day delivery in New York City through its subsidiary Jet.com, according to CNBC. This fall, the retail giant will open a fulfillment center in the Bronx to handle delivery of groceries and Apple electronics. At the start, the service will only handle Jet.com orders.
Parcel, a last-mile delivery service that Walmart acquired in October 2017, will assist with the program. The company uses technology to provide customers with live updates on their delivery’s status, as well as routing algorithms to assist with the sorting and loading of packages.
Elsewhere, Walmart already is working with third parties to enhance its shipment options; both DoorDash and Postmates entered grocery delivery relationships with the retailer in April. However, Walmart’s delivery partnerships with Uber and Lyft ended in June.
Walmart has been expanding its online grocery ordering program across the country. The retailer plans to reach 100 metro areas by the end of 2018, covering more than 40% of U.S. households. Additionally, the retailer is in the process of growing its grocery pickup option from 1,200 stores to more than 2,200.
Cutting delivery times down to a single day will help Walmart compete with other major retailers. Target already provides same-day grocery delivery in New York City, and is planning to leverage its acquisition of Shipt to expand the program nationwide. Additionally, Target is creating a warehouse management system to better integrate its distribution and fulfillment options, as part of a $7 billion investment in store and digital improvements.